Questions and Answers

Questions and Answers regarding the withdrawal of the licence of Nemea Bank (30 March 2017)

1. What will happen to my deposit now that Nemea Bank is unable to repay my deposit?

Now that the MFSA has made a determination that deposits held with Nemea Bank are unavailable, the Depositor Compensation Scheme (DCS) in Malta will cover deposits up to a maximum of Euro 100,000 per depositor. In case of joint account holders, each holder is allowed to receive up to a maximum of Euro 100,000 subject always to the Euro 100,000 limit applicable to all accounts held by a person.

2. How do I know that my deposits are covered by the Scheme?

All eligible deposit accounts are covered by the Scheme. This includes all savings, current and fixed deposit accounts, as well as any accounts which, at the time of the banks’ failure, may be in credit (such as credit card accounts and overdrafts).

3. Do I need to claim for such compensation from the Depositor Compensation Scheme?

No, you will not be required to apply for compensation as the DCS shall be required to obtain information about your deposits directly from Nemea Bank’s systems. Payment of compensation will be effected on the basis of information which the bank will pass on to the DCS.

4. I have a number of accounts at Nemea, denominated in various currencies. Are all currencies covered and how will payment of compensation be calculated?

The DCS covers deposits in all currencies without distinction.

In addition, as you have more deposits at Nemea, all your deposits at Nemea Bank are added up and the total is subject to the limit of compensation of EUR100, 000 per depositor.

However, the DCS shall pay such compensation in euro. Therefore if your account is in any currency which is not the euro, the Scheme will exchange the amount in your account (with any accrued interest) into euro at the official exchange rate of the European Central Bank (ECB) as at 30 March 2017, being the date of determination.

5. How long does it take for the scheme to pay compensation?

The DCS is obliged to pay compensation within 20 working days from the date following the date of determination, that is by not later than 2nd May 2017. The DCS may also defer payment in regard to balances held in dormant accounts. A dormant account is an account in which there have been no transactions within the previous 24 months (two years). Therefore, if your bank has classified an account to be dormant any balances will not be taken into account by the DCS for the purposes of calculating compensation. You may apply to the DCS – at a later stage – for additional compensation (i.e. within the maximum limit of €100,000) for any amounts held in such dormant account. However, the DCS may still refuse to pay such additional compensation if the value of the deposit is lower than the administrative cost that would be incurred by the DCS in making such a payment.

Payment for accounts under nominee or trusteeship may also be deferred.

6. Where will I receive the payment?

The DCS will send the compensation to each depositor in the bank account held with another bank, indicated in the information sent by Nemea Bank to the DCS when there is a determination. In the event that there is no such bank account details, the DCS will affect the compensation by means of a cheque payment which will be sent to the depositor’s address indicated via the bank’s information.

7. How much do I expect to be compensated by the Scheme?

The maximum amount which the DCS is obliged to pay to depositors is €100,000.
This limit applies to the total amount of deposits held by the depositor with Nemea Bank, irrespective of the number of accounts and the currencies of such accounts.

8. In what circumstances am I eligible for compensation greater than the maximum of Euro 100,000?

In addition to the compensation of €100,000, some depositors may therefore also qualify to receive additional compensation not exceeding €500,000, known as a Temporary High Balances, if the amount to the depositor’s account is derived from the following life events:

(a) Monies deposited in preparation for the purchase of a private residential property by the depositor; or
(b) Monies which represent the proceeds of sale of a private residential property of the depositor; or
(c) Sums paid to the depositor in respect of:-

1. A separation, divorce or dissolution of their civil union; or
2. Benefits payable on retirement; or
3. A claim for compensation for unfair dismissal; or
4. A claim for compensation for redundancy; or
5. Benefits payable for death or bodily injury; or
6. A claim for compensation for wrongful conviction

9. How can I claim such a greater compensation?

If you feel that you may be eligible for such an additional compensation then you are required to lodge a claim with the DCS by filling out this form. You will also need to provide supporting documentation for the DCS to be able to assess your claim.

10. What if I have a joint account or a trust, or my holdings are held under nominee?

The share of each depositor of a joint account shall be considered separately in calculating compensation. In the absence of contrary provision, the joint account shall be divided equally among the depositors.

Deposits in an account with two or more persons are entitled as members of a business partnership, without legal personality, shall be aggregated and treated as if made by a single depositor for the purpose of calculating compensation.

Where a depositor is not absolutely entitled to the sums held in an account and another person is absolutely entitled to such sums, the person who is absolutely entitled shall be entitled to compensation in respect of the deposit.

In respect of deposits held by a person acting as trustee or nominee for one or more persons, the deposit making up the claim shall be deemed to belong to the beneficial owners equally unless there exists specific information which may otherwise determine the beneficial interests of such persons. It is up to the trustee or nominee to provide the DCS with information about the names and amounts due to such beneficial owners. Indeed, such types of accounts would not be paid by the DCS within the time limits explained to above. After the determination the DCS will invite account holders operating such accounts to provide it with a detailed list of the beneficial owners of such accounts to enable the DCS to pay such compensation that may be due to such beneficial owners.

11. What will the implications on the Maltese economic and financial stability be?

Nemea Bank is a small bank, licenced in 2008 that has only recently commenced its deposit-taking operations, starting in October 2014. In view of the small size of the bank relative to the overall Maltese banking sector, the measures adopted by the MFSA are not expected to affect the resilience of the Maltese banking sector which is highly capitalised and adequately resourced.

Mistoqsijiet u twegibiet fuq is-sitwazzjoni tan-Nemea Bank ( 30 ta’ Marzu 2017)

1. X’ser jigri mid-depoziti tieghi li ghandi man-Nemea Bank issa li d-depoziti m’ghadhomx aktar disponibbli?

Issa li l-MFSA ghamlet id-determinazzjoni li d-depoziti mhumiex aktar disponibbli, l-Iskema ser thallas lil kull depozitant is-somma sa’ massimu ta’ €100,000. F’kaz ta’ kont kongunt, kull depozitant huwa elegibbli li jircievi sa’ massimu ta’ €100,000 suggett dejjem ghal €100,000 limitu applikabli lil kull kont ta’ dik il-persuna.

2. Kif ser inkun naf li d-depoziti tieghi huma koperti mill-Iskema?

Kull depozitu elegibbli huwa kopert mill-Iskema. Dan jinkludi kull kont ta’ tfaddil, fiss u kurrenti, dan jinkludi wkoll kull kontijiet li fiz-zmien id-determinazzjoni tal-bank jaf ikun fil-kreditu bhal karta ta’ kreditu u ‘overdraft’.

3. Hemm bzonn li naghmel talba ma’ l-Iskema sabiex nircievi kumpens?

Le. M’hemmx ghalfejn taghmel talba ma’ l-Iskema sabiex int tinghata kumpens. Dan ghaliex l-Iskema ghandha l-informazzjoni fuq id-depozitanti kollha, li gabet direttament mis-sistemi tal-bank. Il-hlas ta’ kumpens ser isir skont din l-informazzjoni li l-bank ghadda lill-Iskema.

4. Ghandi diversi kontijiet man-Nemea Bank denominati f’diversi muniti. Il-muniti kollha huma koperti mill-Iskema? U kif ser jigi ikkalkulat l-ammont ta’ kumpens?

L-Iskema ta’ Kumpens lid-Depozitant tkopri kull munita minghajr distinzjoni.

F’kaz illi ghandek aktar minn kont wiehed, l-ghola ammont li jithallas bhala kumpens ghal depoziti aggregati ta’ kull depozitant huwa ta’ €100,000.

Kull pagament lura li jsir bhala kumpens mill-Iskema jithallas bl-Ewro. Meta d-depoziti jinzammu f’munita li ma tkunx l-Ewro, ir-rata ta’ kambju uzata ghandha tkun ir-rata ta’ referenza tal-kambju applikabbli ghall-Ewro kkwotata mill-Bank Centrali Ewropew fid-data tal-kumpens.

5. Kemm iddum l-Iskema sabiex thallas il-kumpens?

L-Iskema hija obbligata li thallas kumpens fir-rigward ta’ depoziti eligibbli minghajr ma ssir talba lill-Iskema fil-perjodu ta’ zmien applikabbli u kemm jista’ jkun malajr, fi zmien 20 jum tax-xoghol minn meta l-MFSA tkun ghamlet determinazzjoni. Din id-determinazzjoni tkun saret wara li l-bank tkun ittehdietlu l-licenzja.

L-Iskema tista’ wkoll tiddifferixxi l-pagament tal-kumpens ghal wara z-zmien stabbilit ta’ 20 jum tax-xoghol meta, il-kont tad-depozitu jkun kont mhux attiv jew l-ammont li ghandu jithallas lura jitqies parti minn bilanc gholi temporanju. Minkejja dawn id-dispozizzjonijiet l-Iskema m’ghandhiex thallas kumpens fir-rigward ta’ depozitu li jkun kont wieqaf meta l-valur tad-depozitu ikun inqas mill-ispejjez amministrativi li kieku jintefqu mill-Iskema meta tkun qeghda thallas lura.

Pagamenti ta’ kontijiet li qeghdin jinzammu taht ‘‘nominee’’ jew ‘‘trust’’ jista’ wkoll ikunu differiti.

6. Fejn se nircievi l-hlas ta’ kumpens?

L-Iskema ser thallas l-ammont ta’ kumpens lil kull depozitant fil-kont tal-bank li gie indikat min Nemea Bank fiz-zmien li saret id-determinazzjoni. Fl-eventwalità li m’hemmx kont tal-bank alternattiv, l-Iskema ser taffettwa l-hlas ta’ kumpens b’cheque li ser jintbaghat lid-depozitant fl-indirizz indikat mill-informazzjoni mghoddija min-Nemea Bank.

7. Kemm hu l-ammont li ser nigi ikkumpensat mill-Iskema?

L-oghla ammont li jithallas bhala kumpens ghal depoziti aggregati ta’ kull depozitant huwa ta’ €100,000.

8. F’liema cirkostanzi jien eligibbli ghal kumpens addizzjonali ta’ aktar minn €100,000?

Sabiex inti tkun tista’ tikkwalifika ghal ammont addizzjonali aktar minn €100,000, id-depozitu ghandu jkun jissodisfa lil xi wiehed mill-kriterji li gejjien:

(a) Ikun jinkludi

1. Flejjes depozitati fil-preparazzjoni ghax-xiri ta’ propjetà residenzjali privata mid-depozitanti; jew
2. Flejjes li jirrapprezentaw ir-rikavat mill-bejgh ta’ propjeta’ residenzjali privata tad-depozitant; jew

(b) Ikun jikkomprendi ammonti mhallas lid-depozitant dwar xi:

1. Separazzjoni, divorzju jew ix-xoljiment tal-unjoni civili taghhom; jew
2. Beneficcju li jithallsu mal-irtirar; jew
3. Benefits payable for death or bodily injury; or
4. Talba ghal kumpens ghal tkeccija ingusta; jew
5. Talba ghal kumpens ghal sensja; jew
6. Beneficcji li jithallsu ghal xi mewt jew hsara fuq il-persuna; jew
7. Talba ghal kumpens ghal kundanna ingusta.

9. Kif nista’ napplika ghal dan l-ammont?

Jekk inti thoss lid-depozitu tieghek jikkwalifika bhala bilanc gholi temporanju, inti mitlub li tapplika billi timla din il-formola. Inti ser tkun mitlub tipprovdi dokumenti addizzjonali sabiex l-Iskema tkun tista’ tevalwa l-kaz tieghek.

10. X’jigri jekk il-kont tieghi huwa kongunt jew ‘‘trust’’ jew ‘‘nominee’’?

Fin-nuqqas ta’ dispozizzjoni kuntrarja, il-kont kongunt ghandu jigi diviz ugwalment fost id-depozitanti.

Id-depoziti f’kont li tnejn min-nies jew aktar jkunu ntitolati ghalihom bhala membri ta’ shubija tan-negozju, assocjazzjoni, jew grupp ta’ dik ix-xorta, minghajr personalità guridika, ghandhom jigu aggregati u trattati bhal li kieku kienu maghmula minn depozitant uniku bil-ghan li jigi kalkolat il-limitu ta’ €100,000.

Fil-kaz ta’ depoziti ta’ persuna li qeghda tagixxi ta’ ‘‘trustee’’ jew ‘‘nominee’’ ghal persuna jew aktar, id-depozitu ghandu jinghad li huwa tal-beneficjarji ugwali, sakemm m’hemmx xi informazzjoni li turi mod iehor. Huwa t-trustee li ghandu jipprovdi lill-Iskema bl-informazzjoni fuq l-ismijiet u l-ammonti dovuti lil kull persuna. Dawn l-ammonti ghandhom jigu pagabbli lil beneficjarju fi zmien tliet xhur mid-data ta’ determinazzjoni.

11. X’inhuma l-impatti fuq l-ekonomija Maltija wara dan il-kaz?

Nemea Bank huwa bank zghir li kien ilu l-licenzjat mill-2008 li ilu jaccetta d-depoziti minn Ottubru 2014. Fid-dawl tal-fatt li l-bank huwa zghir u l-ekonomija ta’ Malta hija b’sahhitha, bil-mizuri addottati mill-MFSA mhux mistenni li jkun hemm effetti fuq is-settur bankarju.